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Maryland

Maryland’s Assisted Housing Preservation Act (MD. CODE, HOUS & CMTY. DEV. §§ 7-101 - 7-501) creates a “right of first purchase” (the functional equivalent to a right of first refusal) in local housing authorities, local jurisdictions, state-registered groups representing tenants, registered non-profit low-income developers and other registered persons with low-income housing experience that are unrelated to the owner. The right of first purchase is triggered only by a proposed sale or transfer; however, notice rights and other procedural protections are more broadly triggered by a proposed prepayment or other termination as well. In executing its right of first purchase, a qualifying entity must commit the property to specified extended use terms equal to the original use restrictions for at least the greater of 20 years or the remaining term of the mortgage or rental assistance agreement. The statute also provides that the property must be appraised at fair market value and contains dispute resolution steps. However, if another potential buyer makes a bona fide offer higher than fair market value, then the qualified entity must match the higher price in order to exercise its right of first purchase.

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